The target man has put pen to paper on a new contract that will keep him with the Canaries until 2015, while the club also announced the signing of Jacob Butterfield
The 31-year-old's future had been the subject of speculation after he handed in a transfer request in May, shortly before former boss Paul Lambert was appointed the new manager of Aston Villa.
However, the striker has now completed a dramatic u-turn by pledging his future to the Canaries until the summer of 2015.
The news was confirmed on the club's official website following a press conference on Tuesday afternoon, which also broke news of the capture of 22-year-old Jacob Butterfield, who has signed a four-year deal with the Norfolk outfit after his contract at Barnsley expired.
New boss Chris Hughton, who was appointed Lambert's replacement in June, was thrilled to have tied down the striker.
"I said when I first arrived that talking to Grant was a priority, as what he has achieved for Norwich and what he brings to the squad is there for all to see," Hughton told reporters.
"It's great news that he has signed a new contract and I'm really looking forward to getting down to work with Grant and the rest of the players when we return to training next week."
And Holt was similarly delighted to have secured a further three years with the Premier League outfit.
"I'm really pleased we've agreed things and that I've got a three-year deal. It gives me and my family a bit of security," he told the club's official website.
"I do appreciate where the club were coming from in terms of the process we've gone through to get to this point. Now I'm just really keen to concentrate on getting back to work with the rest of the lads and concentrating on having a good pre-season and getting ready for the start of another season in the Premier League."
Holt was named Norwich fans' Player of the Year for the third consecutive season after he finished as the top English goalscorer in his first Premier League campaign, netting 15 times to guide the club to a 12th-placed finish.
There had been speculation that the former Shrewsbury man would not be given a long-term deal due to his age, but Hughton and the board appear to have been willing to meet the demands of the Canaries talisman in order to keep him at Carrow Road for the foreseeable future.
He will now take part in pre-season training with Hughton's first two signings of the summer - Butterfield and Scotland international Steven Whittaker, who has acquired international clearance to play for Norwich after leaving stricken Scottish giants Rangers.